Recent Corona Virus incident has left the stores AND warehouses depleted of medical face masks.
Ansell Limited (ANN.AX) is one such company that sells a variety of medical disposal items such as face masks. For example:
Some BioClean, sterile face masks are:
https://www.ansell.com/au/en/life-sciences/life-sciences-products/facemasks?page=1&page_size=10
And the respiratory face masks are:
https://www.ansell.com/eu/en/products/sandel-respiratory-face-masks
So the question is, is this share worth buying? But we should ask more questions first.
Q:Is the situation serious enough to affect ANN's share price?
A: The world is running out of face masks, at least in all retail outlets and online sites I've visited. So yes, there is a demand.
Q: Will the seriousness of the Corona Virus subside? One would definitely hope so, and hope that it subsides soon. However, as we speak, we are seeing an increasing severity, so we have not reach the turning point yet. In terms of buying ANN, it would be buy quick, and ready to sell.
Q: There may be a few other face masks manufacturers, so how is ANN performing relative to its peers?
A: Comparing with 75 peers in the HealthCare Sector and Equipment/Services Industry:
Sales is $2.1B, being the 5th out of 75
MarketCap slight over $4B, ranked 6th. Compare this with its relatively high Sales above.
P/E ratio of 18.95 and ranked 22nd - it is clearly not overpriced according to this metric.
Growth rate at a healthy 16% , ranked 14th.
Earnings Yield at 5.25, ranked 15th.
So it appears that ANN is not usually in the top of the list, but mostly ranked in Top15 in the metrics above. The exception is PE ratio, where lower rank may actually be good. The ranks are important from the point of comparing against its peers, since the numbers by themselves are quite arbitrary.
In short, ANN may be on of the undervalued stocks, simply from its financial metrics. Couple this with the surge in worldwide demand for its medical products, ANN may be a Strong Buy.
Disclaimer: I don't own ANN today, but plan to buy soon. This is NOT financial advice It is my personal opinions and has no guarantee of future performance.
Ansell Limited (ANN.AX) is one such company that sells a variety of medical disposal items such as face masks. For example:
Some BioClean, sterile face masks are:
https://www.ansell.com/au/en/life-sciences/life-sciences-products/facemasks?page=1&page_size=10
And the respiratory face masks are:
https://www.ansell.com/eu/en/products/sandel-respiratory-face-masks
So the question is, is this share worth buying? But we should ask more questions first.
Q:Is the situation serious enough to affect ANN's share price?
A: The world is running out of face masks, at least in all retail outlets and online sites I've visited. So yes, there is a demand.
Q: Will the seriousness of the Corona Virus subside? One would definitely hope so, and hope that it subsides soon. However, as we speak, we are seeing an increasing severity, so we have not reach the turning point yet. In terms of buying ANN, it would be buy quick, and ready to sell.
Q: There may be a few other face masks manufacturers, so how is ANN performing relative to its peers?
A: Comparing with 75 peers in the HealthCare Sector and Equipment/Services Industry:
Sales is $2.1B, being the 5th out of 75
MarketCap slight over $4B, ranked 6th. Compare this with its relatively high Sales above.
P/E ratio of 18.95 and ranked 22nd - it is clearly not overpriced according to this metric.
Growth rate at a healthy 16% , ranked 14th.
Earnings Yield at 5.25, ranked 15th.
So it appears that ANN is not usually in the top of the list, but mostly ranked in Top15 in the metrics above. The exception is PE ratio, where lower rank may actually be good. The ranks are important from the point of comparing against its peers, since the numbers by themselves are quite arbitrary.
In short, ANN may be on of the undervalued stocks, simply from its financial metrics. Couple this with the surge in worldwide demand for its medical products, ANN may be a Strong Buy.
Disclaimer: I don't own ANN today, but plan to buy soon. This is NOT financial advice It is my personal opinions and has no guarantee of future performance.
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